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basic study on consumer behavior to equity & commodity market
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Title:- Consumer Preference to Equity market & Commodity market
Presented by:- Vatsal D. Thakkar (137780592109)Mentor:- Dr. J. P. Joshipura
Summer internship project
About Broking Industry A brokerage firm is a financial institution that facilitates the
buying and selling of financial securities between buyer and seller.
The staff of brokerage firm is entrusted with the responsibility of researching the markets to provide appropriate recommendations.
These firms also offer margin loans for certain approved clients to purchase investments on credit, subject to agreed term & condition.
Traditional brokerage firms have also become a source of up-to-date stock prices & quotes.
Established in December,1996 by M/S. Sureshchand S. Jain.
Sectors: SSJ Finance & Securities (P) Ltd. (BSE,
NSE, CSE, and CDSL) SSJ Commodities (P) Ltd. (MCX, NCDEX)Company is known for it’s service & perfect
guideline.Their business is built upon three important
cornerstones… Their Client, Business Associates and Employees.
Literature Review
Kumar, R. and Chandra, A. (2000), had studied that Individuals often invest in securities based on approximate rule of thumb, not strictly in tune with market conditions.
Sen Shankar Som and Ghosh Santanu Kumar (2006) studied the relationship between stock market liquidity and volatility and risk.
Problem Statement & objectiveThere is a negative view by investors for
equity market and commodity market.Knowing the investing patterns for equity
market and commodity market.Differentiate the view of investors towards
equity & commodity.
Research MethodologyResearch Design : Exploratory
Data Source:
Primary: Questionnaire
Secondary: websites and book
Research Instrument : Structured questionnaire
Sample Respondent Profile: Investors who invest
their saving
Sampling Method : Random sampling
Sample size: 100 observation
business38%
profession13%
govt. Service16%
private service24%
others9%
ocupation
Occupation No.Business 38
Profession 13
Govt. Service 16
Private service 24
Others 9
Q. Which of the following will best describe your occupation?
Q. What is your annual income?
Income No.<50000 14
50001-100000 21
100001-200000 47
200001-400000 12
>400000 6
<5000014%
50001-10000021%
100001-20000047%
200001-400000
12%
>4000006%
Income
Q. What is percentage of your income do you invest?
Income Investors
<5% 75-10% 1910-15% 3715-20% 1720-25% 1225%< 8
7%
19%
37%
17%
12%
8%
Investment from income
<5%5-10%10-15%15-20%20-25%25%<
Q. What is percentage of your income do you invest?
Investment Investors(%)Bank deposit 73Mutual funds 32Real estate 17Life insurance 67Equity & commodity 60Derivative market 14Govt. Bonds 6
Bank de-posit
Mutual fund
Real es-tate
Life in-surance
Equity & commdity
Derivative market
Govt. Bonds
Invst-ment
73 32 17 67 60 14 6
5
15
25
35
45
55
65
75
Invstment
inveto
rs(%
)
Q. Which among these investment criteria you usually prefer?
Criteria Investor Risk 57Return 85Liquidity 37Tax rebate 14Marketability 32Tenure 42
Risk Return Liquidity Tax rebat Mar-ketibility
Tenure
Criteria 57 85 37 14 32 41
5
15
25
35
45
55
65
75
85
Criteria
invest
or
(%
)
Q. In which investment invest your savings?Investment Investors
Equity 37
Commodity 18
Both 6
EQUITY(37) COMMODITY(18)
BOTH (6)
Q. In which market do you prefer to trade?Market Investors NSE 35BSE 10Local 2
NSE BSE LOCAL
Markets 35 10 2
2.5
7.5
12.5
17.5
22.5
27.5
32.5
37.5
Markets
Axis Title
Q. In which sector do you most prefer to invest?Sectors Investors Banking 15It 9Oil & Gas 6Pharmaceutical 7Telecommunication 10Automobile 12Other 11
Bank-ing
IT Oil & Gas
Phar-maceu-
tical
Telecommu-nica-tion
Auto-mobile
other
Series 1 15 9 6 7 10 12 11
1
3
5
7
9
11
13
15
Investor sectors
Axis Title
Q. Which type of trading do you most prefer?Trading pattern Investors Intra day 25Delivery 12Future & option 6
58%28%
14%
Treding patern
intra daydeliveryfuture & option
Q. What attracts you towards equity market?
High long term 12Quick short term 31
Quick short term gain; 31
High long term gain; 12
Q. How often do you trade?
Frequency Investor
Daily 58Often 42
Daily58%
often42%
Frequancy of trade
Q. Which commodity you prefer for trading?
Commodity Type Investors Precious metal 15Base metal 6Agro products 0Energy product 3
63%
25%
13%
Sales
Precious metal Base metalAgro productsEnergy product
Q. Which type of trading do you most prefer?
Type of trading Investors Intra day 15Positional 7
68%
32%
Type of Trading
Intra day Positional
Q. What attracts you towards commodity market?Reasons Investors High return 16Short term gain 15Speculation 6Liquidity of investments 1
High return Short term gain
Speculation Liquidity of investments
0
2
4
6
8
10
12
14
16
18
attraction for commodity
attraction for commodity
Q. what is better?
Investments InvestorsEquity 42Commodity 19
69%
31%
what is better?
Equity Commodity
Findings
After survey, research and data analysis I can able to understand that every investor has different view towards investments.
Every customer’s income and nature impact on his investment.
In current scenario investors become smarter in investments and use their savings smartly.
Consumer don’t like to take interest in agri. Product’s market.
Contribution and learning from the projectAfter SIP I realize there is crucial role
of broking industry to guide investors.Investor has different behavior in
different situation of market trends.Investor more prefer equity market
than commodity market. I learned how equity & commodity works, how
trades are done and how market is work. I learned oddin software, basics of RMS and
back office.
Limitations of the studyMain limitation of study is bias of customers
towards different investments. Investors not given true information.
Referenceswww.moneycontrol.com www.investopedia.comwww.finance.yahoo.comwww.wikipedia.orgwww.businesstoday.comwww.ssjfinance.com